Local reps applaud sales tax collection from Amazon

Area businesses and lawmakers celebrated a different kind of tax holiday on Friday when the state started collecting its 6.25 percent sales tax on purchases from online giant Amazon.com.

By Yuan Ma/Daily News correspondent

Wicked Local

By Yuan Ma/Daily News correspondent

Posted Nov. 2, 2013 at 12:01 AM
Updated Nov 2, 2013 at 2:04 AM

By Yuan Ma/Daily News correspondent

Posted Nov. 2, 2013 at 12:01 AM
Updated Nov 2, 2013 at 2:04 AM

BOSTON

» Social News

Area businesses and lawmakers celebrated a different kind of tax holiday on Friday when the state started collecting its 6.25 percent sales tax on purchases from online giant Amazon.com.

"It's something we needed in Massachusetts because our Main Street businesses and local businesses have been at a disadvantage," said state Rep. Jeffrey Roy, D-Franklin.

Roy said tax-free online purchases are unfair for local business that must pay the state sales tax.

"If somebody goes into a local store, they can effectively use it as a showroom, look at the items, talk to store owners, learn about the qualities of the merchandise, and then they can leave the store and order it online, and they will save 6.25 percent," he said. "I am glad to see it has finally been fixed."

Barry Feingold, president and CEO of Milford Area Chamber of Commerce, also is glad to see Massachusetts collect its sales tax on purchases from Amazon.

"That's actually a good thing for our local business owners," he said. "Not only do local business owners have businesses in this community, they also live in this community."

Massachusetts joins 13 other states that collect sales taxes from Amazon purchases, including California, New York and New Jersey, according to Amazon.com.

And the new sales tax collection will have other benefits. The Massachusetts Department of Revenue estimates that sales taxes from Amazon will generate $36.7 million for Massachusetts during this fiscal year.

Sen. Richard Moore, D-Uxbridge, said the sales tax paid for purchases of Amazon products will also benefit the state’s cities and towns.

"It would guarantee that all taxes currently owed would be collected so that Massachusetts could continue to provide financial support to towns needing to build or renovate school buildings and fund other uses for which the sales tax is intended."

Roy said the new sales tax source will help state government plug a hole created by the repeal of the computer software tax.

"This new collection effort certainly could not have come at a better time with the holiday season coming up," he said.

And Moore and Roy said they support collecting sales taxes on purchases from other online retailers.

"I support congressional passage of a federal compact allowing all states to collect sales or use taxes from any Internet sales purchased by Massachusetts residents," Moore said.